Saturday, August 04, 2007

Insane

The Ritz-Carlton Moscow threw open its neo-imperial doors near the Kremlin this week. The cheapest room for the summer tourist season is $1,036 with tax.

That rate reflects how Moscow hotel openings are lagging behind room demand fueled by soaring tourism, exports and investor interest in the world's largest energy producer

High hotel prices reflect Russia's economic outlook. Foreign direct investment reached $9.8 billion in the first quarter, an increase of 150 percent from the same time last year, according to the Federal Statistics Office. Russia's economy is now about $1 trillion, ranking it 10th in the world between Spain and Brazil.

"There is huge foreign investment coming in," said Andrew Somers, president of the American Chamber of Commerce in Russia. "The feedback I get is not cancellations, but only shock at the room rates."

-Bloomberg

3 Comments:

Blogger Hey Skipper said...

So why doesn't China exhibit that same phenomena?

August 04, 2007 12:59 PM  
Blogger Oroborous said...

Probably because construction in China has been ongoing at such a furious pace that China produces 45% of the entire world's demand for cement.

Although I'm sure that one could find achingly high and overpriced room rates in China, should one desire.

August 04, 2007 4:37 PM  
Blogger Hey Skipper said...

Well, that's always true.

When in Shanghai, I stay at the Hilton, a four-star hotel.

While I don't know the rate exactly (since I don't pay it), I think it is in the realm of $300/night.

If the Ritz can charge one large a night, one would think every hotel chain on the planet would be abuilding in Moscow.

One would think.

However, I found Russia the worst place, by several furlongs over the nearest contender, I have ever been.

Perhaps there is a relationship here.

August 04, 2007 4:55 PM  

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